President William Ruto’s job creation agenda received a significant boost following a ruling from a three-judge bench that upheld the Housing Levy, set at 1.5% of an employee’s gross monthly salary.
This decision dismissed six petitions challenging the Affordable Housing Act and confirmed that the levy was enacted properly.
Justices Ogla Sewe, John Chigiti, and Josephine Mong’are noted that both the National Assembly and the Senate effectively engaged stakeholders in the public participation process.
“Our ruling affirms that the levy is legally instituted and adheres to the Constitution,” the judges stated.
This ruling is a victory for Ruto, who argued that his employment initiatives would suffer if the levy were struck down.
The validation of the levy is expected to enhance efforts to stabilize the nation’s finances through increased revenue from affordable housing projects.
The Treasury reported that between March and June 2024, the Housing Levy generated Sh54.2 billion, with expectations of raising Sh63.2 billion by June 2025.
Previously, a court had described the mandatory levy as “discriminatory and unfair” for applying only to formal employment sectors.
After the government reintroduced the Affordable Housing Act and approved fund management regulations, Ruto announced that the program had already created over 160,000 jobs, emphasizing the need to increase female participation in construction from 20% to 30%.
During Mashujaa Day celebrations, Ruto reaffirmed his commitment to the housing initiative, noting the urgent demand for job creation highlighted by protests in June.
He compared Kenya’s efforts to successful models in countries like Korea and Singapore.
Charles Hinga, Principal Secretary for Housing and Urban Development, noted the significant role of Kenyan artisans in the affordable housing projects, stating that the initiative has revitalized local economies.
Currently, around 124,000 housing units are under construction across 40 counties, with the program generating approximately 206,000 jobs and making homeownership more attainable for many Kenyans.
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